Loan modifications can be arranged for borrowers who cant afford repayment plans.The loan servicer changes the terms of the loan to make it affordable. Variations include lowering the interest rate. Sometimes past-due amounts will be rolled into an extension of the time of the loan.

Fannie Mae has shown a substantial increase in loan work-outs since the program began. The percentage of loans worked out has grown from 35 percent in 1997 to 50 percent in 2003. In real numbers this translates into 26,775 loans worked out; 26,788 properties were foreclosed.

Freddie Mac

The formal name of Freddie Mac is the Federal Home Loan Mortgage Corporation. Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing.

Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage pass through securities and debt instruments in the capital markets. By doing so, Freddie Mac ultimately helps homeowners and renters get lower housing costs and better access to home financing.

Properties for Sale

HomeSteps is the second-largest owner/seller of single-family residential real estate in the United States (Fannie Mae is the largest). It is a service brand of Freddie Mac and a free-of-charge service available to home buyers and real estate professionals. HomeSteps handles Freddie Macs REOs.

When you visit Freddie Macs Web site (www.freddiemac.com/), you can search the database of homes for sale. Freddie Mac has special financing programs.You can also search the database for a local real estate agent.

FDIC

The FDIC insures the accounts of customers of banks up to $100,000. It is part of the federal government. If a bank becomes insolvent, the FDIC

takes over the bank and any of its assets, including the banks REOs. The FDIC lists these properties on its Web site, www.fdic.gov/.

The FDIC is another resource for making Quick Cash in foreclosures. The FDIC also has service centers called field operations branches in major cities. They have real people that will answer questions concerning FDIC property sales that are not answered on its Web site.

We include here some of the questions and answers from the FDIC Web site to give you a feel for how it does business.

How should I use your listing of properties? This listing of real estate is intended to provide interested parties with preliminary information only. This list is not a solicitation of offers and does not constitute an offer to sell. The information is provided for the purpose of inviting further inquiry and has been obtained from sources we believe to be reliable.

How do I find out more information relating to these properties?

Each property will have a contact name and phone number. The contact name will either be an individual from an FDIC office or an individual associated with the sales initiative (e.g., Auction Company, Real Estate Broker). If a property information package (PIP) has been prepared on a particular property, it can be obtained from this individual.

How often is this listing of properties updated? It is the FDICs intent to update the listing of properties by close of business each Mon-day.Therefore,with the volatile nature of the real estate business, it is important to find out if the property is still available since the last update.

What is the condition of properties sold by the FDIC? All properties are sold in an as is condition. The FDIC makes no guarantee, warranty, or representation, expressed or implied as to the location, quality, kind, character, size, description, or fitness for any use or purpose, now or hereafter. (We think this is the best definition of as is condition for real estate we have ever seen. Leave it to the government to make sure it cannot be held responsible.)

How is the listed price established? Listed prices are established by a variety of factors, which may include independent appraisals, brokers opinions of value, and current market conditions. All prices are subject to change without notice.

Is seller financing available on the properties? Seller financing may be available to qualified buyers on residential properties with a minimum purchase price of $500,000 or those sold as affordable housing and on all commercial and land properties, regardless of price. Specific sale terms and conditions can be obtained from the individual assigned to market the property.

Once an offer is submitted on a property, how is my offer evaluated? A number of criteria are considered when evaluating offers from prospective purchasers. These include, but are not limited to, net funds received after deducting brokerage commissions and sales expenses, and payment terms considered in light of the applicants creditworthiness and ability to perform.The FDIC reserves the right to accept, reject, or counter any submitted offer. While reviewing such offers, the FDIC further reserves the right to continue its sales efforts, including responding to any inquires or offers to purchase the property.

How can I have my name added to the FDIC real estate mailing list? The FDIC does not maintain a mailing list of those interested in purchasing real estate as the corporation sees the Internet as the most efficient method to communicate its current property listings in a timely fashion. Auctions and Sealed Bid Sales announcements will both appear on the Internet, under the National Asset Sales Calendar-Real Estate Sales, and be advertised in local and regional newspapers.

In the next chapter we will teach you the intricacies of IRS foreclosures. This is a fairly tricky area.You must know about the IRS even if you are not buying foreclosures from them. The IRS has special rights and privileges with regard to foreclosures in general.

If the IRS has a tax lien on a property, you need to find out about it and deal with it. Otherwise, you may be in for a nasty surprise down the road long after you think you have clear title to that foreclosure you picked up four months ago on the courthouse steps.